|

Asian stocks remain soft-footed as Japan sees surprise decline in exports

  • Asian equities are in soft declines as trade fears take their toll.
  • Emerging markets are faring much better for the day, but remain exposed to bond yield fluctuations from the US.

Asian-session equities have seen a softer landing on Thursday, with the major of bourses seeing mild declines as broader markets remain tepid on risk appetite.

Trade concerns remain a major barrier to bull runs, with the US-China trade war ramp-up remaining close to the surface, and worries about an increasing economic slowdown in both China and Japan pushing down buyers' appetite.

Japan saw their trade export figures decline for the first time in almost two years as knock-on trade tensions begin to spread more noticeably into other Asia regions, and Japan's Nikkei 225 index is back -0.75% with the Tokyo Topix index is down -0.33%. China's share are lopsided in the red as well, with Hong Kong's Hang Seng index down softly at -0.15%, but the Shanghai CSI 300 index is seeing steeper declines, down -1.51%. 

Australia's ASX 200 bourse is almost perfectly flat on the day, up 0.01%, while emerging markets are seeing noticeably more bullish potential with the MSCI broad Asia-Pacific index being the only winner in the ASEAN window, clipping higher by 0.78% for Thursday.

Nikkei 225 levels to watch

The Nikkei's bull run from last week's low is beginning to face challenges, with the index getting turned away from 22,900.00 for two straight days this week, and the index is softening its stance back into 22,650.00 as trade worries deflate buyers' hopes. The index is now clipping into yesterday's lows, and a continued slide will see the Nikkei challenging the last major swing low at 22,030.00.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

More from Joshua Gibson
Share:

Editor's Picks

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.


Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations
Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.
BoJ recap: A pause for now... but Japan has entered a new inflation phase
The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.
The 2% inflation target came from a throwaway remark. It now moves trillions
The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.